DoT Refused to Grant Additional 2G Airwaves to Operators

The Department of Telecommunication rejected Anil Ambani-promoted Reliance Communication’s demands for additional 2G airwaves for its GSM based mobile services.  DoT also put on hold similar pending applications from other new entrants. The telecom ministry declared that it was not feasible to entertain demands for additional 2G airwaves from any of the telecom operator as TRAI was looking into the feasibility of pricing additional airwaves.

 RCOM, which had been awarded 4.4 MHz of start-up GSM radio frequencies in most circles, had demanded for additional 1.8 units of spectrum mentioning that this was the minimum amount committed to RCOM when it obtained approvals to launch services on this technology platform in 2008. Additional airwaves are given to companies after their subscriber base grows to touch certain pre-defined targets. RCOM pointed out TRAI’s recommendations in this perspective according to which additional airwaves must first be made available to new entrants who have already been awarded start-up spectrum to help them perform their operations efficiently. TRAI’s recommendations essentially means that companies which hold 4.4 MHz of start-up spectrum will be given first priority to enhance this to 6.2 MHz for no additional cost.

As per TRAI directives, the incumbents who held less than 8 MHz of airwaves would be entertained next. Those incumbent’s holding would be enhanced to the 8 MHz cap provided they meet rollout obligations and pay the onetime fee. Last in queue will be new entrants like Tata DoCoMo and Uninor, which are yet to receive start-up airwaves in many circles.

TRAI’s proposal will benefit RCOM in all circles. However it will have a negative impact on operators such as Tata DoCoMo and Uninor which are yet to receive start-up airwaves in many circles being placed last in the priority queue for airwaves. These companies will then not stand any chance to get startup 2G spectrum in circles like Delhi.